Check out today's top analyst calls from around Wall Street, compiled by The Fly.
'COMPELLING' INVESTMENT: BMO Capital analyst Kenneth Zaslow upgraded Hershey (HSY) to Outperform from Market Perform with a price target of $163, up from $150, which represents 16% upside from current levels. Despite an ongoing valuation premium to its food peers, Hershey has become a "compelling investment," Zaslow told investors in a research note. Near-term concerns surrounding Halloween likely are overestimated, and the company's vision on brand investment, pricing, data analytics, e-commerce, and cost management should expand its competitive position and drive earnings growth at or above its long-term growth algorithm in 2021, the analyst contended.
'VERY STRONG' GROWTH: Cleveland Research analyst Scott Bender upgraded Best Buy (BBY) to Buy from Neutral as his checks point to growth that "seems very strong in absolute terms" and looks to be outpacing supply across almost all categories. The analyst, who believes some of the drivers of demand in the near-term will be sustainable over the medium-term, is modeling earnings per share that is 14% above consensus looking out to fiscal year 2022, he noted.
COVID-RELATED RESET, CHINA GROWTH: Goldman Sachs analyst Jason English upgraded Estee Lauder (EL) to Neutral from Sell with a price target of $231, up from $147. The analyst cited the company's recent "COVID-related reset" of consensus expectations and said he also believes that a "sustained" Chinese consumption will be positive for its business. China growth is "appealing," though more "compelling" ways to invest behind it exist, English told investors in a research note. The analyst further stated that his prior Sell rating was predicated on China slowing from above-trend growth, and this prediction has "proven to be unequivocally wrong."
TRANSFORMATION IN 'EARLIER INNINGS': Cowen analyst Max Rakhlenko upgraded RH (RH) to Outperform from Market Perform with a price target of $435, up from $370, after taking over coverage of the name. The analyst is constructive on RH's transformation and sees upside to the company's long-term targets on revenue. Channel checks and a European market analysis point to an underappreciated long-term opportunity for RH, Rakhlenko told investors in a research note. The analyst believes RH is in the "earlier innings" of a multi-year transformation and should benefit from "secular tailwinds" as affluent shoppers increase investments in their homes.
SOLID FUNDAMENTALS, ATTRACTIVE VALUATIONS: Berenberg analyst Luisa Hector sees solid fundamentals and attractive valuations in the global pharma space. Further, Hector forecasts 6% annual sales growth and a 10% earnings compound annual growth rate for the sector through 2024. The analyst initiated coverage initiated coverage of
Hershey
+1.06 (+0.76%)
Best Buy
+0.69 (+0.64%)
Estee Lauder
-0.42 (-0.19%)
RH
+10.64 (+2.95%)
Bristol Myers
+0.465 (+0.78%)
AstraZeneca
+0.33 (+0.60%)
Pfizer
-0.03 (-0.08%)
Merck
-0.02 (-0.02%)
Eli Lilly
+0.4 (+0.27%)
AbbVie
-0.37 (-0.42%)
Novartis
+0.785 (+0.90%)
Sanofi
-0.05 (-0.10%)
Roche
+ (+0.00%)